Latest insolvency statistics demonstrate need for budget certainty, says R3
Commenting on the Insolvency Service’s latest monthly statistics for England and Wales, R3 President, Sonia Jordan, a restructuring and insolvency partner at Knights, said: “September’s company insolvency figures continue the relatively stable pattern we have seen over recent months, but we have seen a further increase in personal insolvencies as cost of living pressures continue to bite.
“There were 1,882 company insolvencies in England and Wales in September, 4% lower than in August and 5% lower than in September 2025. While this suggests the overall picture remains relatively stable, businesses continue to face a range of financial pressures including high energy costs, increased employment costs, expensive borrowing and cautious consumer demand. Inevitably these pressures become too much for some companies, as reflected in today’s figures.
“Against this backdrop, businesses will be looking to the chancellor and the October Budget for measures that give them greater certainty and confidence. In a recent poll of R3 members, reducing employment costs was the measure restructuring and insolvency professionals most frequently identified as supporting businesses and individuals, followed by reductions in business taxes and business rates reform.
“These concerns are reflected in the latest ONS labour market figures, published today, which show the lowest number of advertised job vacancies since 2021 with the sharpest decline among small businesses as those employers scale back recruitment citing the increased costs incurred in employing people as a key factor. Small and medium sized businesses are considered by many as being the backbone of the UK economy and the chancellor should take note of this sector’s cries for relief from the almost prohibitive cost of recruitment.
“Pressure is also being felt more acutely in some sectors. Retailers continue to face cautious consumer spending, high operating costs and increased employment costs. The difficulties experienced by well-known high street names such as Poundland and TG Jones, which have looked to restructure and close stores after falling into financial difficulty, underline the challenges facing the sector.
“Directors should continue to keep a close eye on cashflow and seek advice as soon as they become concerned about their business’s finances. The earlier advice is taken, the more options there are available to turn the situation around.
What the latest insolvency stats show
Corporate insolvencies in September 2026 decreased by 4% compared to the previous month, with 1,882 cases compared to 1,953 in August. September’s figure was 5% lower than the same month in 2025, when there were 1,973 cases.